Hello all, good to see you. I'm here in our studio with my colleague Lau and I'm Jakob. We are part of Implement Consulting Group where we work in our unit operations where we have more than 400 colleagues. And we've been working with supply chain planning and operational excellence at Implement for many years. And today we want to zoom in on some planning processes that are very close to our hearts, but also how different tools or one tool can enable those to work better. So today some of the questions we will try to go over is what could this gap between S&OP and S&OE be? And is it something that you also can recognize in your own organization? What tools, if not just one, could help bridge this gap? And what are some of the capabilities that SAP IBP, OBP has? These are exactly the questions we would like to explore with you today. And with that said, we will take you to our agenda. Yeah, short and sweet little agenda we have aligned here. So we want to let you know what is coming up. We want to talk about what is the S&OE and S&OP, if there's a gap and a self-assessment on that topic. Then we want to go through the, just the intro into the S&OP and S&OP in IBP. And then we want to focus on some of the elements that we see that SAP OBP is solving for our clients that another tool cannot solve in this S&OE and S&OP process. Then we want to, you know, bring you on and see if there's some questions. And then we will try and try and answer them, have a dialogue about it. But Jacob, maybe we should just get started. Yeah, let's do so. Yeah. So the next one is also around, we have a lot of these webinars out there. So if you scan the first QR code here, then you will come to our library of already existing webinars that have been. Go in with your curious mind and see, you know, what is up. Then we have the one today. Then we also have one coming up next week on harmonized planning. And then we have the 10 years anniversary in person supply chain conference in September 24th. So, I mean, here you're also free to sign up if you are intrigued. Good. But there were some of the introduction parts here. So, let's get started with a look into what today's session really is about. So, S&OP and S&OE. We want to start by establishing how we see these processes working together. And what is important to note here is that it's a set of cross -functional decision-making processes that bridge planning and execution. That's also very much what we will focus on today. And basically, we will start out by outlining how we see them when they are working well. And then we will move into when they are not working well. And you could say this planning gap is present. And just to take some of our very classical implement examples. We have the planning pyramids. On your left, you have different horizons. So, ranging from three years plus in the strategic part, the top of the pyramids, to sales and operations planning just below it, where we work in usually monthly buckets, 3 to 24 months. Then you have sales and operations execution below the S&OP. And these two are the ones we really want to put some effort into talking about today and how we can connect these better. And then at the bottom, we have the detailed planning and fulfillment part where we are down to days and we are very close to execution in ERP and the likes. So, looking at this, obviously, most of us here hopefully know that S&OP is a monthly process and it has monthly cycles. So, within this, every time we have a cycle in S&OP, we basically have four cycles taking place in S&OE. And what is really key here is that we are able to translate the demand into a constrained short term view. So, basically, S&OP, we try to make some decisions for the longer term. And then in the S&OE, we basically do our reality check. Is this really something we can do? And when these processes are really well integrated, there are different policies and rules that also are the same between the two. This results in a feasible plan based on agreed priorities. And when we have that, then we kind of get out of the most firefighting that usually is what could happen in the S&OE horizon. So, connecting these two is really key in any organization. Yeah. And if we look at this more from a process perspective, then S&OP is a classical demand going from a forecast to a demand that we then try to make a supply review based on. So, basically, we want to assess our loading on the resources or resource groups. We want to try to balance it out. And then we have different decision meetings where we try to decide on the things that we couldn't decide within the sub-networks or sub -supply chains in our organization. Between S&OP and S&OE, there are some important things that we also want you to take note of. So, obviously, segmentation is really something that is key to make sure it's aligned between the two. Because otherwise, when we get the handover from S&OP, how we translate those decisions, that can go very wrong if we don't have an aligned segmentation. So, that's really a key focus area to focus on. Also, when we talk about S&OP and S&OE, it is very important that we manage to know how we are allocating in the different horizons. So, in the good alignment between the two, we have a clear alignment to the right customers and also for the right products. So, again, when these two are working in sync, we know how we should prioritize in both planning processes. And a final note is, of course, that when we are in the S&OE part of this pyramid, we also have a link down to operations. And that link is where we establish a distribution plan and a master production plan. So, a last comment here could be S&OP is our long-term constraints where we want to balance the plan. And then S&OE is our short-term constraints where we want to make the reality check of the plan we made. Good. When we are talking about supply chain planning processes, organizations, and systems, it's very important that we remember that a system, for instance, is just an enabler. And you cannot really have a good process if the planning concepts in the process are not fully aligned. So, when we talk about system implementations and capabilities, it's always key that the process and the planning concepts are also addressed as part of a potential project. If you don't do that, then the system will not really get you anywhere because it cannot run it by itself. It needs the right people and it needs the right process to be supporting. So, keep that in mind. And today we will, as you probably already understood hopefully, we will focus mainly on the process part of things, but also on the system part of things. Yeah. Yeah. And I mean, then, now we want to just put a couple of questions out there to take the temperature in the audience. So, please go to, if you have a phone, then you can bring it up now and then scan the QR code. Otherwise, you can go in through Menti.com and then put in the code there if you follow what it says here on the slide. And then we want to, you to go through the questions and evaluate where you are on the scale. And then afterwards, we will then share the results with all of you so we can kind of go through them together and maybe shape this presentation and walk through a little bit upon it. So, yeah, go to Menti, try to do it and then we'll come back to you. there is no P process and there is no E process. Could be. So what you see here in the middle is five points where we usually see a struggle. So it is planning decisions that get lost. It's business rules that get lost in translation or into different actions. It's the actual constraints that are not one-to-one between the two processes. A very common one, master data and transactional data, out of sync. And lastly, scenarios are decoupled. So what are examples here of a planned decision that get lost? So let's imagine we are in the S&OP process and we have just made a face-in of an important MPI and agreed on a ramp-up profile for this and the launch quantity. So that's settled. Most likely that's part of the S&OP decision meeting if it's a very important MPI. Then three weeks later, when it hits the S&OE horizon, we really don't have any record of it. So instead of actually working with the MPI volumes as we set out to do in the S&OP decision-making process, we end up giving it a standard firefighting treatment instead of getting it planned right. And obviously MPIs are really key to many organizations. So really this thing about the decisions coming from S&OP, not cascated down to S&OE, getting lost, that is really something that can turn operations upside down. Second one, business rules that translates into different actions. So we spoke a bit about it before. When we're doing segmentation of different products, it could also be customers for that matter, in the two processes, then imagine that in the S&OP process, a given product would be an A product. Hence, we want to put more importance to that one. It might be one of the ones we always need to be able to sell and produce. So in the S&OE horizon, if that product all of a sudden, for some reason, is a B product, that leaves room for bigger adjustments in a horizon where we don't really have so much flexibility. Remember S&OP, we have a lot of flexibility usually. S&OE, we are closer to where things actually happen because here we are looking mainly at orders. So we don't want too many surprises coming into the S&OE horizon. Then we end up in firefighting, just like our colleagues told you about last time, if you joined that webinar. So really key that we have a segmentation that is aligned between the two. And in general, business rules fly between the two. Actual constraints are not the same. So again, when we are in S&OP, we can look more on the accurate picture. Everything might look green, but below a group, we might have some resources that are overloaded. And yes, there are ways to find out of this. In S&OP, but sometimes the S&OP can be designed so we don't really have that visibility. So when we then get to the S&OE horizon and we actually look a little bit deeper, we realize that we have a lot of red warnings that we need to do something about. So that is really problematic because again, it will result in firefighting, trying to move orders between the lines, figuring out who can we actually cut if we cannot deliver all orders. And then to build on that, if our segmentation is not aligned at the same time here, then we might decide to cut the wrong orders because our customers or products are not aligned to A and B between the two planning processes. So this can really become a crucial thing to solve in the organizations. Then we have master data and transactional data. So I think that's the one I've heard most about in my experience that it's always out of sync. And I think there's a good reason why because classically in SAP IBP, you would work with batch-based loads for the S&OP horizon. And here, it's more something you determine as a rhythm to load it in and not something that comes based on a given change in master data or transactional data. So imagine that you had orders in the S&OP horizon that would be displayed as open and therefore addressed. So you would do something to really make sure those orders can be accommodated. But then in reality, when we get to S&OP horizon, they were already shipped and they should never have been discussed, meaning that we would have allocated resources to orders that probably didn't have to be allocated there because they were already shipped out or we already had the stock to cover it. So these frictions here between the two processes can really lead to incomplete or uninformed decisions. And that's something that we believe you can get fixed if you work with SAP IBP, OBP. And lastly, scenarios decoupled. So most of you hopefully know that when you work in SAP IBP, OBP or just SAP IBP, generally you have so-called scenarios that you can work with. And let's imagine that we have a scenario where we've made a case where we are trying to pre-build stock for a seasonal peak. And that stock again has been approved in the S&OP horizon and we want to make sure that happens also in S&OE. But when we reach S&OE, we simply are not able to bring forward that scenario to see what the impact is in the short horizon. So instead of having this tightly integrated as part of the same scenario because we would be in the same model, which would be the case for with IBP, OBP, then we would be working with this purely manually trying to bring it into our S&OE process and tool, hoping that it somewhat represents what we decided in the S&OP process. So you can probably tell that and you might also recognize yourself in some of these planning gap areas. So what can we really do about this? So the good thing is that we believe at least that SAP IBP, OBP can address many of these challenges. So if you look here, we have the same challenges lined up and what you see below them is basically some of the features that we believe can bridge this gap you could have between the two planning processes. So continuing from the examples I mentioned before, so now we are in SAP IPOP. It's one data model. We can both do order-based planning, but we also have features like demand and inventory as part of our planning model. So what would that mean? Well, that means that the MPI we spoke about before that just got lost, it will slide into the S&OE horizon because we're in the same data model. And the way we put in the plan and the way we save it, it's the same metrics, key figures so to speak, we're working with. And so there we don't lose that MPI. We have the clear visibility. On the business rules part, so here we have a constraint planning with clear prioritization rules. So what does that mean? Well, from the example before, if we have an A product in our S&P process, that product will also be an A product in the S&OE. The segmentation is done in the same data model and it follows through. And on the constraints, so here, instead of having maybe groups of constraints that are disconnected due to different systems, for instance, or due to design, we would have them all aligned one to one. And what we could see here through our so-called gating factors that we'll come back to is when and why we might have an originalization in the full horizon. So in short, this means that our planning floor would agree with our cockpit, which is really what we would like to get to. On the master data and transaction data, so here there's something called real-time integration to SAP ESC slash ES4. And I mentioned it shortly before. So RTI is event-driven, not batch-driven. So that means as soon as a change happens on master data, it could be on the transportation lane, for instance. It could also be a sales order coming in. We will get it straight away into IPOP and then we have to decide when we want to include it in our network plan, as an example. So data cannot really be a root cause of uninformed decisions anymore because we will have the data up-to-date when the data arise or data changes arise. And lastly, scenarios are decoupled. So we would have the scenario I spoke about before with the stock buildup that will also be part of the SNE horizon. So we will basically be able to see what is the impact in our short term if we do this buildup. So again, it will be a scenario where we can with confidence say, yes, we can also execute on this in the SNE horizon. So these are just some of the main features we think really can address some of the planning gap challenges we identified before. But we do actually have others that we'll come back to a little bit later. But before that, let's try to position IBP, OBP on harmonized planning, which again will be covered more in depth in the next webinar. But let's try to position this in a system overview and see its role compared to PVDS and ECC as an example. And now that's you taking us for that. Yes. So now the pyramid has become, we can see it horizontally. So what we want to show on this slide is essentially, if we talk about OBP, the S&OP and the S&OP process will be happening up there. So everything is interlinked. As Jacob was also saying, it's one data model. It's real-time integration. So if something happens in operations, we are able to see it right away in the system. If we have a little change, it's visible for everybody. So this is also where we will calculate and the output is kind of highlighted in the yellow boxes. But essentially, what we want to do in OBP is calculating unconstrained demand plan. So first we will see, okay, this is what we will want. And then, yeah, so that will be the first output. And then it will be a constraint demand plan. And this will, of course, generate orders or not monthly, weekly. It will be on daily level. And those orders will then be pushed further down into the system so we can start executing them. And that will be visible. So for all. So if you are in ECC, you will be able to see the same supply orders as you can see in OBP. So there will not be a misalignment on, okay, we have a planner, a scheduler. They're seeing this order. It's not the same number. Everything will line up and match. So it will be a one-to-one picture of the end-to-end supply chain solution. There will also be happening, the detailed scheduling will be in a different tool. And maybe, Jacob, you can, I don't know if you have anything else you wanted to say. I think what is important is that this is a generic landscape of how it could look with OBP as the center tool for making plan decisions, obviously for the S&OE and S&OP horizon. And where this is really different, I think, compared to before is that we have the demand planning and the inventory management taking place in the same data model. And therefore we can go from unconstrained to constrained in the same data model easily, just like the output of that will be directly sent down to ERP as it's confirmed. And then the visibility in OBP is that we can basically capture all types of orders we would have from ERP in OBP. There will be a horizon where we're not working with them, but we can at least see what they are. And we believe that's really key to have that visibility in the planning processes of the future. Yeah, so with that said, we will transition a bit into other features that we have when working with SAP IBP OBP. So now we will present three other features conceptually and some simplified examples. And maybe just in short, so when we have the right to, it helps us help stop misalignment from hiding. And we think that's really what the OBP does. It gives you the reality as it is, and then you can, of course, act on it. So on this page here, you see selected other key figures of IBP OBP. And the three ones on your left are ones we will cover on the next slides with a conceptual example. So going through them, characteristics-based planning. So now we can actually do that with SAP IBP OBP. And basically, that means that now color and size actually matters because we can basically do our constraint plan based on that. Then we also are able to work with pegging to identify supply issues upstream, downstream in our network via the gating factors. It's also very cool. And a very important one for certain industries to work with shelf life. And we can do it down to a customer product differentiation level. So we basically know where we have problems in our supply plan that relates to certain requirements on a sales over. And another cool feature that we'll not touch upon today is the transportation load builder. So basically now we can avoid half trucks. And that will be our exception and not the rule that we will send trucks that are not fully optimized for distribution. But I think now let's cover some examples. Yeah, definitely. Yeah. Yeah. So here it's the characteristic based planning. So we all know that we get a sales order and they order, in this example, red color. Then we are saying, yes, you can have it. But if we actually go down into the supply chain and into our bomb, we can look on a batch level now that we can see that, OK, on this specific product, we have different characteristics. So we have a white one and we have a red one. So here we can see, OK, what is the customer asking for? It's this specific product in a red color. And then we will check on here, the batch level, seeing, OK, we are actually missing a volume on the red color. And we cannot supply that right away. So a new production order will pop up. So here we are making sure that we actually producing what the customer order is asking for. It will also apply to forecast. So if we are having a forecast on a SKU, then we can say, OK, it's also having a characteristic. So it's different colors. Then we will start producing and planning after that. So it's linking that that that that linking the demand all the way to supply on a specific characteristic and making sure that we have the right products at hand to to to to fulfill the orders. Yeah, so it's a new feature and really something that has been long awaited. At least we heard that from many clients. So that's feature one. Then let's move to feature two. Yes. So now we spoke about characteristics. Jacob, I've also spoke about constraints and us being able to have the same constraints in the S&OP and the S&OE process. So what we will also do here is that we can actually calculate what are the constraints throughout the entire plan. And it will highlight, OK, we have an issue on a specific product line. So then if we allow the system to balance the situation, then IBP will go in and figure out, OK, can I move my my my my my my my my my my my my 18 percent to a different resource? And then it will move it to a different resource and try to rebalancing the the supply plan. And this is something that we can ask the system to do, but we can also use it more of an indicator of, OK, we're going to have a problem here and then doing manual interaction saying, OK, can we maybe get more capacity for that specific constraint, can we move some of the the demand elements around so we have a different mix on our production lines. So this is a super cool tool planning end to end with constraints in both the S&OP and S&OE process. Yeah. And it's really one of the key benefits for many that we can do constraint planning from from its setup in the network according to how we want to design that network. So going on to to the last key feature we have explained here. So shelf life, a very important one, especially for for the dairy industry and other industries where shelf life is really key to manage. So it starts with a sales order where we have a minimum shelf life requirement of 30 days, 75 units to make it easy to follow through. And when we then run our planning run here, OBP will try to to pick the demand to supply first expiry first out. So what does that mean? Well, it will result in us figuring out, can we deliver the sales order with the stock or the batches we have at hand? And in this example here, we realize by the gating factor that we have a problem on our projected stock. So projected stock for batch A1, because here we do have the sufficient amount of units to satisfy the sales order. However, the shelf life is a problem. So we basically only have 12 days and we require 30. So that is really not something we can do. But instead, the system will then suggest to look at other batches. And luckily, we have another batch with stock, but we don't really have the full amount to cover the order. So the system will go in and reserve that batch for the order and then initiate a new production to close or fulfill that order that was made. And that results in us being able to satisfy the order. Be mindful here that this example is simplified. We know that there could be lot sizes and other planning parameters in play here, making the confirmation of the sales order maybe less easy, as it might show here. But conceptually, this is basically how the system will address it. Yeah. So that is to give you a little flavor of some of the features that we think are very cool in SAP IBP & OBP. So now we actually will move into Q&A. And I see we have some questions here lining up. So we will just try to take a short moment to figure out where we want to start here. And thank you for the questions, by the way. So we have a question here, a comment here from Henrik. If we had a future webcast, could present going from the old time series to a new harmonized planning area. That is definitely a good input and something we have an approach to. We don't have a planned webinar for that yet, but that could potentially come. But we will connect to you, Henrik, on that question on the back of this webinar. Then we have a question from Eli. So what is your advice on how to execute SAP in a complex company structure with 60 to 70 markets and 10 in-house manufacturing sites and 400 external manufacturers? That sounds like a very big network, to be fair, Eli. And I definitely understand why that is a challenge. But how we would usually approach this would be to, first of all, figure out how are these markets supplied? What are the networks we have inside our company organization to supply the markets? Is there a way we can split this up so we don't have to run everything in one go? Because if we have to do that with the complexity you're describing here, that might take a while. So I think some of the steps before being able to do this would be to assess the whole company structure and the network you have designed and figure out, is this really the right way, optimal way to go about it? And then also maybe do it in steps. So trying to say, let's start with a simple part of the network and make that work very well. And then we can extend as we go along. So you also wrote that as 400 external manufacturers, that doesn't make things easier. So to answer the question here, we have an approach of how we would, let's say, analyze and just try to redesign, perhaps, the network and the different decisions you're making that. And that would be the first step in answering that question fully. So what do you think, Lau? Do you have some other questions that you want to bring forward here? It's a lot of good ones. Yeah. I mean, you can continue picking. I think it's your birthday today almost, right, with these questions. That's very kind of you. So then we have a question here from Mark Hammermann. Do you need to have the exact production capacity constraints maintain in the system in order to run OBP planning? The answer is, if you want the result, so a constrained network plan to be good, yes, then you need that. You need to have it because the only place you can get your master data and transaction data from is ECC, S4, slash ERP. And especially if it has to be RTI, it has to be one of the two there. So that is a key, I would say. Then let's see other questions we have. We have time for two more, I think. I will just jump down here to Johan G. So what is your experience on the time it takes to integrate an S&OP process into a complex organization not previously experienced with strategic planning? And you'll get a consultant answer here, Johan. Sorry for that, but it really depends. I would say if we're only talking about process without knowing how big the organization is and we have a fixed rhythm in a project like that, I would maybe between three to five months. And then there'll, of course, be an analysis phase, a design phase, and then an implementation phase, which is the one that really takes time and where we have to do a lot of business simulations. So ballpark guess would be three to five months if it's very new to the organization. And then we have time for one more. Do you want to take one, Lau? What about we take Ms. Andersen? Can you read it up? Yeah. So having established process and systems, whereas OBP calculating in S&OE horizon and time series calculating the supply plan in S&OP, but also running in S&OE, we see a challenge of not having one set of numbers in two planning departments. How would you approach this challenge? I think I have an idea about that case. But I will say it's a bit hard to give you a quick answer here. It requires a little bit more time to make an answer you can actually use for something there. So I will, just like with Henrik, I will make sure we reach out to you so we can connect on that question in particular. And then we got one more question I think we can cover from Mark. So Mark, you say, how flexible is OBP if constraints change? For example, machine breakdowns or high sickness rates? So in general, you can switch constraints in SAP IP OBP so you can make them unconstrained, but you can also kind of shut them down or close them. But then, of course, you need to have another resource that can take over whatever orders, forecast you are translating that you want to cover. Yeah, but it could also be that, you know, Mark, you are starting seeing the breakdowns and then you will go in and you will, on that specific resource, then you will go in and map and saying, hey, okay, I'm expecting this breakdown to last for X amount of days or weeks. And then you can go in and override the availability that you have on that constraint. And then it will start planning, as Jacob is saying, that, you know, it will move it around. The same you could do with, you know, sickleaf. But it's all about, like, modeling in the right way and getting it to play. I would say it's flexible. It's definitely something you can do and we are doing with multiple clients. True. So I think I misunderstood at first, Mark. Like, so the capacity modeling in IBP, OPP, you can do that starting with the basis you would have from ECC or S4 there. All right. We didn't capture all questions here, but thanks a lot for sharing those. We will move on with some closing remarks here. Yeah. Yeah. So, I mean, we just want to let you know that we are here to have a dialogue with. If you have any questions, we are very curious and we will engage. So, if we want to look at how we can get a clear handshake between S&O E and S&O P, that can be established in order-based planning. And then we also want to hope that some of the takeaways was also that we have a lot of different functionalities that will be able to close these gaps. So, the one data model, the gating factors, shelf life, scenario-based planning. I think that is some of them. Yeah, definitely. And then also reach out if you have any questions. You know, you are not scared of putting them up here. So, if you have anything, reach out to some of us, me or my colleagues, and we will get back to you shortly. I don't know if you want to put any... Maybe just to re-emphasize that, as we said in the beginning, the tool is an enabler. So, process, organization, and also the planning concepts, that's also crucial to get right. That's also why we usually start these kind of journeys with understanding the maturity, especially between S&O E and S&O P. And from there, we can start to plan how the tool fits and can fit into that space. We are very happy to continue the conversation afterwards. As Lau mentioned, you have our names there, plus some colleagues. And those are also the colleagues you will see next week, presenting the webinar where we zoom in on harmonized planning. Yeah, so, if you want to be ready for harmonized planning, please sign up now, and you can get a spot. And also for the 10-year anniversary supply chain conference. So, there's these two coming up. I hope that you will listen in when my colleagues speak about harmonized based. And I actually think just to... Because we, as I said, we have so much on our mind. The first QR code here to the recent webinars, there you actually find our webinar on S&O E, specifically how to avoid firefighting, which is kind of the predecessor to the webinar we have today, where we focus on some of the same things. And then we brought in the tool perspective. We also have a webinar from last week around how Agentex can solve supply chain planning. So, that's also very hot these days. And I actually think there was a question around that. And one last thing, sorry to keep you there. On Thursday, September 24th, it is this in-person flagship event. And that one is actually quite nice to attend, if I had to say it myself. Because there will be customer cases. There will be discussion corners. And you will get a look into the future by the SAP IP product owner, Stefan. And he will be there in person. So, if you are really curious on this topic, especially the tool side of things, you don't want to miss that one. Thank you all for joining. It was a pleasure to have you here. And very good questions. Then, hope to see you next week in the other webinar. And have a good day.